Raw sugar recovers after hitting two-week low

LONDON: Raw sugar futures on ICE edged up on Friday after earlier hitting a two-week low, as funds took a pause on buying amid mixed signals from the wider financial markets.

SUGAR

March raw sugar rose 0.5% to 15.66 cents per lb at 1331 GMT, having earlier hit a low of 15.55.

Dealers said the market has lost upward momentum after climbing to the highest in more than 3-1/2 years earlier this month, but there remained solid support around 15.50 cents.

"From a fundamental perspective there is probably limited reason for prices to slump, as much as the rally to 16.75 was difficult to justify," said a dealer.

March white sugar rose 1.7% to $448.90 a tonne.

COCOA

March New York cocoa rose 0.3% to $2,517 a tonne, after hitting a two-week low on Thursday.

European warehouse cocoa stocks fell by 1.5% in the 2019/20 season, according to an International Cocoa Organization (ICCO) survey.

Chocolate maker Mondelez on Thursday beat Wall Street estimates for fourth-quarter revenue and earnings, boosted by higher demand for its snacks and Oreos.

March London cocoa edged up 0.1% to 1,722 pounds per tonne, after slipping to a two-week low on Thursday.

COFFEE

March arabica coffee fell 0.9% to $1.2280 per lb.

A forecast for Honduran arabica exports this season has been cut by about 11%, national coffee institute IHCAFE said, citing damage from two recent hurricanes that helped spread a persistent fungus.

"Coffee prices have picked up considerably, not least due to the prospect of the off-year in Brazil. New lockdown fears had pushed the price to a little over 100 cents (in) November, and arabica is currently trading at 126 cents," said Commerzbank in a note.

March robusta coffee fell 0.8% to $1,302 a tonne.

Vietnam's coffee exports in January are estimated to have dropped 17.6% from a year earlier to 120,000 tonnes, data showed.